Leather Cooperative Stops Unemployment in Northeast Brazil

José Carlos Castro, founding partner and former president of the Arteza Cooperative in Ribeira, Paraíba state, northeastern Brazil. Credit: Carlos Müller / IPS

José Carlos Castro, founding partner and former president of the Arteza Cooperative in Ribeira, Paraíba state, northeastern Brazil. Credit: Carlos Müller / IPS

By Carlos Müller
CABACEIRAS, Brazil, Nov 11 2024 – The small community of Ribeira stands out in the Northeast, the poorest region of Brazil. There is no unemployment here. One in five inhabitants make a living directly or indirectly from the Arteza Cooperative of Tanners and Leather Artisans.

“An idea has the power to transform your world,” said in a philosophical tone Ângelo Macio, president of Arteza, recalling the creation of the cooperative in 1998 under the impulse of a Dutch priest who no longer lives in the region.

“You come to the community and you don’t see unemployed young people, they all work in the workshops, they have their income, they raise their children, they have their houses… their transport. Everything comes from the leather activity”, he said, while showing a sandal made by one of the cooperative’s artisans.

This is the case of Tarcisio de Andrade, 29, and a member of the cooperative for seven years. “I am married and have a son. My wife doesn’t work, but we all live off my work in Arteza. I don’t plan to leave Ribeira,” he said while making a sandal.

The expansion of the cooperative, which has a tannery, a shop selling supplies and tools, other shops selling its products and online commerce, has boosted the local economy. At first, the tannery processed 800 hides per month, then it spiked to 12,000, a number the members had never thought they would reach. Nowadays they process 20,000 hides.

The 1,700 residents of Ribeira seem to believe that anything is possible.

Before, there was no petrol station, no department shops, and no pharmacy. Thanks to the cooperative’s earnings, now they have all that, and people don’t have to travel 13 kilometres to Cabaceiras, the capital of the municipality of 5,300 inhabitants, of which Ribeira is a part.

The headquarters of the Arteza Cooperative in Ribeira, municipality of Cabeceiras, in the microregion of Cariri, with a long tradition of leather work. Credit: Carlos Müller / IPS

The headquarters of the Arteza Cooperative in Ribeira, municipality of Cabeceiras, in the microregion of Cariri, with a long tradition of leather work. Credit: Carlos Müller / IPS

Solar energy, the driver

The cooperative’s success is largely due to solar energy. In 2018, it received equipment worth US$ 58,728 from the government of the state of Paraíba, where the municipality is located, with resources from the International Fund for Agricultural Development (IFAD).

The savings obtained with the 170 panels installed were decisive.

“Solar energy was a milestone in our history. Today we would be paying 10,000 reais (US$ 1,755) in electricity bills in the tannery alone, and now it’s down to 600 reais (US$ 105). We were able to buy two new machines that allowed us to increase production and improve the quality of the hides,” Macio said.

There was no longer any need to increase the number of panels because when they were installed they were already double what was needed at the time. Today, with this energy, it would be possible to double production and process 40,000 hides.

The original plan was to install photovoltaic panels on the roof of the tannery, but the cooperative’s board of directors came up with a better idea: to build a new roof.

Thus, they increased the drying area for the hides and they seized the opportunity to collect water from the scarce rainfall for the water-consuming treatment of the hides. Apart from the economy, the old roof could only dry 300 skins. Under the solar panels it is possible to dry 2,500.

There is no unemployment in Ribeira, a community of 1,700 inhabitants in northeastern Brazil, says Ângelo Macio, president of Arteza cooperative. Credit: Carlos Müller / IPS

There is no unemployment in Ribeira, a community of 1,700 inhabitants in northeastern Brazil, says Ângelo Macio, president of Arteza cooperative. Credit: Carlos Müller / IPS

Tradition in leather

At the beginning, the 28 founding members of Arteza were supported by the Brazilian Micro and Small Business Support Service (Sebrae), a private entity financed through a compulsory contribution from the companies. There are now 78 partners, benefiting some 400 families.

The entire micro-region of Cariri, where the municipality is located, and especially Ribeira, have a long tradition of leather work.

Macio’s great-grandfather worked with leather, but his product was rustic and consisted mainly of coarse clothes, hats and work utensils used by the herders to navigate the caatinga, the predominant biome in the northeastern interior with many thorny plants.

The cooperative’s production evolved from traditional products due to the decline of extensive cattle raising and young people’s desire for more modern products. Today, work clothes account for some 10% of the total.

Currently, the flagship product are sandals, which account for about 60% of the total production, including wallets, women’s bags and backpacks, the most expensive product, which cost the equivalent of 150 dollars.

By joining the cooperative, artisans can buy inputs such as glue and tools, as well as leather at cost price. Those who are not members and have other suppliers pay 40% more on average. Members do not need to worry about sales: they hand over the product to the cooperative, which negotiates it with the traders.

When the cooperative receives the money from the sales, it deducts the value of the inputs that the members have withdrawn. In the end, they receive a 30% profit in average.

Some artisans, however, remain faithful to traditional products. This is the case of José Guimarães de Souza, who specialised in the production of quaint ‘horn hats’.

Zé, as everybody knows him, is not a member of the cooperative, although his workshop is 100 metres from it. He learned the trade from his father, whom he reveres with a photo next to a crucifix as if he were an icon. He buys the raw material and sells his hats through a local merchant.

The cooperatives’ products are sold in craft shops all over Brazil, especially in the cities of the Northeast, where the Arteza brand is already recognised. That is why, with Sebrae’s support, the cooperative is working to establish the products’ designation of origin with their own seal next year.

The Arteza cooperative in northeastern Brazil has built a new warehouse to expand the drying of hides and install 170 solar panels, enough to generate twice the energy currently consumed by the tannery. Credit: Carlos Müller / IPS

The Arteza cooperative in northeastern Brazil has built a new warehouse to expand the drying of hides and install 170 solar panels, enough to generate twice the energy currently consumed by the tannery. Credit: Carlos Müller / IPS

“Tomorrow, anything can happen…”

In front of Souza’s workshop, called ‘Zé’s Crafts – The King of the Horn Hat’, a graffiti catches the eye. It reads: “Don’t worry, everything can happen tomorrow, even nothing”. It is the first verse of a local folk song called “The nature of things”.

The tannery was processing 16,000 skins when the pandemic started, forcing the cooperative to suspend work for more than six months. It has now reached 20,000 units. The cooperative’s income grew by 70%, including leather and handicrafts.

“The pandemic’s impact was huge. We went almost to the bottom of the well,” Macio recalled. In late 2021, the cooperative started promoting its products through Instagram and other social media to sell online. At first, this type of sales amounted to 20% of the total. Today it reaches between 35% and 40%.

In Cariri there is not so much leather and the cooperative is forced to buy it from other states. Now the cooperative’s problem is finding raw materials and labour because everyone in the community, especially young people, is already employed.

“Handicrafts have been my survival. Through it I have raised my whole family without having to leave my beloved land”, said José Carlos Castro, a founding member and former president of the cooperative. He currently works in the tannery, doing heavy work: removing the hair and defective parts of the skins.

The "chapéus de chifre", as the traditional horn hats are called, handcrafted by José Guimarães de Souza and displayed in his workshop, next to the Arteza Cooperative, in the Ribeira community. Credit: Carlos Müller / IPS

The “chapéus de chifre”, as the traditional horn hats are called, handcrafted by José Guimarães de Souza and displayed in his workshop, next to the Arteza Cooperative, in the Ribeira community. Credit: Carlos Müller / IPS

Sustainability

Arteza is the only tannery that works with natural products, such as the bark of anjico (Parapiptadenia rígida), a tree native to several South American countries. The tanning process lasts one month. If chemicals, such as chromium, were used, it would only take two days.

“We maintain a natural process to avoid environmental damage and harm to people. The natural process is in our DNA,” Macio explained. But difficulties arise. Existing trees in the region are not enough, although the cooperative avoids predatory consumption.

A few years ago, when the bark was removed, the tree died. Nowadays, the tree is cut down and sprouts again, and can be cut down again after five to six years. From what has been cut, the bark is removed, put through a shredder and placed in tanks with water where it releases the tannin.

When the tannin is gone, the bark is used as mulch for planting fodder palm, a type of cactus used for animal feed in the dry season.

The water is treated and disposed of in the wild and the shelled sticks of the anjicos are used for fencing.

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